Commodities markets summary

Oil prices traded in a mixed fashion, with little in the way of major news moving the markets.

US benchmark West Texas Intermediate for October fell 30 cents to close at $US93.35 a barrel on the New York Mercantile Exchange.

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In London trade, Brent crude for October closed at $102.70, up 41 cents from Friday.

The market is "really indecisive today," said Robert Yawger of Mizuho Securities USA, noting "relative weakness in the WTI while Brent was stronger."

The rise in the dollar against other major currencies also put pressure on crude prices, Yawger said. The firming makes dollar-priced crude more expensive for buyers using weaker currencies.

Tim Evans at Citi Futures said that reports of rising June oil inventories in China, the world's second-largest oil consumer after the United States, could "reinforce the market's sense of oversupply."

Monday's trade showed "the same tolerance for geopolitical risk that has become the established norm," Evans said.

"Neither further conflict along the Ukrainian border, an ISIS military victory in northeastern Syria, nor escalating conflict in Libya have sparked much buying."

PRECIOUS METALS

Gold futures ended a touch lower as traders weighed pressure from a stronger US dollar against simmering tensions in eastern Europe.

Gold for December delivery, the most active contract, settled $US1.30, or 0.1 per cent, lower at $US1,278.90 a troy ounce on the Comex division of the New York Mercantile Exchange.

A stronger dollar kept gold prices under pressure for much of the day, as the greenback advanced to an 11-month high against the euro. Currency traders favoured the dollar in the wake of Federal Reserve Chairwoman Janet Yellen's remarks, made on Friday at a conference in Jackson Hole, Wyoming, that reinforced the idea the central bank could tighten monetary policy soon if the economy continues to improve faster than expected.

Meanwhile, the euro was under pressure after European Central Bank President Mario Draghi said, at the same conference on Friday, that inflation expectations had declined and the risk of doing too little to boost Europe's economy outweighed the risk of doing too much. Some currency traders saw this as a signal of likely looser monetary policy from the ECB going forward.

Gold is traded in dollars and becomes more expensive for foreign buyers when the dollar strengthens against other currencies.

Still, gold's losses were muted as investors kept an eye on simmering tensions between Russia and Ukraine over Moscow's support for pro-Russia rebels in eastern Ukraine. Russia's foreign minister Sergei Lavrov said his country wants to send a second convoy of humanitarian aid to Ukraine as early as this week.

September Silver futures fell 28 US cents to $US19.34.

BASE METALS

Copper futures held on to a slight gain Monday as hopes for a potential stimulus package from China offset pressure from weaker-than-expected US home-sales data.

Copper for September delivery rose 1.35 US cents, or 0.4 per cent, to $US3.2180 a pound on the Comex division of the New York Mercantile Exchange. It was the highest settlement for the most actively traded copper contract since August 4.

Investors remain hopeful that China will announce some form of stimulus measures in the coming months to buttress the country's economy.

Recent data showed expansion in Chinese manufacturing fell to its slowest pace in three months while housing prices continued to drop.

Beijing is likely to step up its policy efforts to ensure the economy hits its growth target of 7.5 per cent for the year, said Bob Haberkorn, a senior commodities broker with RJO Futures in Chicago.